Honeywell Automation Share Price Falls To Over Five–Month Low After Q2 Profit Misses Estimates

Honeywell Automation India Ltd.'s share price slumped to the lowest level in over five months on Wednesday as its profit fell in the second quarter, missing analysts' estimates.

The company's net profit declined 5.73% year-on-year to Rs 115 crore in the second quarter ended in September, according to an exchange filing. That compares with Rs 161 crore in consensus estimates given by analysts polled by Bloomberg.

Nuvama attributed Honeywell Automation India's disappointing numbers to adverse sales mix, low exports, and intense competition. The brokerage kept the rating on the stock unchanged at 'reduce' with a target price of Rs 40,500, implying a downside of 17.29% from Tuesday's closing price.

The company's topline declined 7.25% yoy to Rs 1,024 crore in the July–September period from Rs 1,104 crore. The numbers came below Bloomberg's estimate of Rs 1,194 crore for the period.

Honeywell Automation India has been posting disappointing numbers for the last few quarters, and that's the case again in the second quarter, Nuvama said. From here on, the company's growth depends on domestic business, while order visibility from the parent company remains hazy.

Nuvama is valuing the stock 45 times of the financial year 2027 estimated earning per share of Rs 900. There's no potential for upside despite factoring in an estimated 5% revenue CAGR over fiscal 2024–2027.